US stocks are bouncing off session lows after a sharp tech and chip sell-off wiped about $500 billion in market value from the Philadelphia Semiconductor Index. AMD (AMD) is under pressure even after beating on revenue, profit, and guidance across data center, client, and gaming, as Wall Street questions lofty AI valuations following blockbuster deals with OpenAI and Oracle. Super Micro Computer (SMCI) sinks after missing earnings despite already cutting guidance, adding to worries that AI infrastructure demand isn’t translating into the blowout server sales investors expected. A fresh read on the labor market from ADP showed 42,000 private payrolls added last month, while September was revised to 29,000 jobs lost, underscoring a still-fragile hiring backdrop.
On the consumer front, McDonald’s (MCD) reported another quarter of strong US same-store sales, powered by the return of its $3.99 Snack Wrap and new $5 and $8 value meals — but the “K-shaped” economy is in full view, with lower-income traffic falling nearly double digits. At the same time, visits from higher-income individuals rise by a similar amount. Cava (CAVA) also saw comps rise but cut its full-year outlook as 25–35 year-old diners pull back under the weight of student loans, housing, and healthcare costs. Bitcoin (BTC-USD) is trading back above $100,000 after briefly breaking below the key level for the first time since June, still down roughly 20% from last month’s record as “whales” — long-term holders — dump as much as 400,000 coins in a month. In trending tickers, Novo Nordisk (NVO) cut its obesity-drug outlook again while battling Pfizer (PFE) for startup Metsera, IBM (IBM) plans thousands of job cuts as it leans harder into software and services, and Pinterest (PINS) slumps on a soft revenue outlook and AI-ad worries despite launching its new Pinterest Assistant shopping tool. Wall Street also digests the election of Democratic Socialist Zoran Momani as New York City mayor, with leaders like Bill Ackman, Jane Fraser, and Jamie Dimon pledging to work with City Hall, and investors tuning in for Fed Governor Steven Myron’s interview on the path of interest rates.
Takeaways:
AMD beats across the board but slides as investors reassess lofty AI chip valuations; Super Micro misses again and deepens AI hardware jitters
Bitcoin drops below $100,000 as long-term “whales” dump holdings, with support eyed near $95,000 and catalysts tied to liquidity and the shutdown
McDonald’s Snack Wrap and value deals drive US comps, but lower-income visits fall sharply as higher-income traffic powers a K-shaped consumer
Cava trims same-store sales guidance as younger diners feel the pinch from loans, housing, and inflation
Novo Nordisk, IBM, and Pinterest move on guidance cuts, layoffs, and AI advertising concerns amid broader questions about market concentration and bubble risk
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